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bigduckontax
bigduckontax, Accountant
Category: Tax
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We are setting up an overseas branch in the UK. I need some

Customer Question

Hi there,
We are setting up an overseas branch in the UK. I need some clarity on the obligations
post registration of the Branch. To be precise we would like to know the following :
- The reporting requirement for Audited Financials of Parent Company.
- Statutory requirement on Maintenance of Books of Accounts for the Branch
- Audit and Reporting of Branch Accounts
- Statutory Registrations required for the Branch operation
- Income Tax aspect of the Branch
- Any other Statutory obligations including reporting required.
You may add any other point that is of some relevance to us in this context.
Regards,
Hassan Malik.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello Hassan, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Audit requirement is [source: Gov UK Web Site]:

'Your company may qualify for an audit exemption if it has at least 2 of the following:

  • an annual turnover of no more than £6.5 million
  • assets worth no more than £3.26 million
  • 50 or fewer employees on average'

There is no statutory requirement regarding books of account save that they must be capable of showing a true and fair view of the company's affairs.

You will presumably set up a private limited company in the UK to operate in that country.

You can find a general guide as to how accounts should me maintained and presented:

https://www.gov.uk/running-a-limited-company/company-and-accounting-records

The only statutory registration is with Companies House. Any company formation boutique does this for you anyway. You have to make an Annual Return and also a Corporation Tax Return. The latter provides an ability for the abbreviated accounts to be extracted for Companies House and filed together with the tax return.

Companies are not subject to Income Tax, but Corporation Tax. I presume that you will employ local professionals to run the accounts.

I do hope that I have shed some light on your question.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
We are Voltech Group- http://www.voltechgroup.com/Basically our branch office in the UK is going to be used mostly for Marketing and business development. We are executing projects in India, Middle East and Africa mostly in the energy and engineering services Sector.
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.

Your obvious solution wold be to set up a private limited company in the UK to conduct this business. This company would have to have a Registered Office in the UK, but there is no requirement for shareholders and/or directors to be British Citizens or even be resident in the UK.

I should have mentioned that if this company's turnover exceeds 83K in any one year they it would have to register for VAT and charge the standard rate of 20% on its service invoices. Corporation tax is at 20%.

Customer: replied 1 year ago.
Thank you Mr Keith , Much Appreciate it.
Expert:  bigduckontax replied 1 year ago.

Delighted to have been of assistance, Hassan.

Expert:  bigduckontax replied 1 year ago.

Thank you for your most generous bonus.

Customer: replied 1 year ago.
Its a pleasure sir..
Expert:  bigduckontax replied 1 year ago.

Just a post to clear my question list.